Expanding your business internationally
In today’s global marketplace, many successful firms have expanded and increased their sales revenue by exporting to other countries. Canada’s largest trading partner, the U.S., is usually a first choice and offers enormous potential to increase sales and profitability. However, many exporters are now turning their attention to overseas markets that represent even greater opportunities – and challenges.
Expanding your business internationally can bring significant benefits but carries additional risk that requires research, an understanding of political and economic climate and due diligence.
Consider these factors:
- Identify the target country or region that you want to export into
- Research, select and choose the right distribution channel
- Define the terms of the reseller contract and agree upon mutual expectations
- How currency fluctuations may impact trading risks
- Establish a credit management policy; Export Development Canada is a viable option here
- Litigation and liability risk – it may be a benefit to establish a different operating company for your export business
- Shipping and transportation costs
- Duties, tariffs and import taxes
- Language – where possible, conduct business in English or another language you are familiar with as another layer of complication is introduced when using an interpreter
- Update your website to clearly articulate your “value proposition” for international inquiries and to support your reseller network
To read the full Business in Vancouver article, click here.
Source: Business in Vancouver (www.biv.com)
Greg Spafford Firstbase Business Services